As the world becomes increasingly interconnected, and as we become increasingly dependent upon the information flows from tens of billions of sensors and the algorithms that drive them, the associated risk of global scale shutdowns becomes more real. Yet, as Oliver Wyman Partner Prashanth Gangu points out in a recent piece in Harvard Business Review, we've learned a great deal from natural disasters that could be applied to mitigate the growing and catastrophic risk posed by AI.
Recent natural disasters and extreme weather have taught managers that they need to meet the AI risk challenge by going beyond merely buying coverage and creating robust contingency plans. And the sheer scale of interconnectedness, complexity, and impact brought by potential AI failures means a more multi-dimensional playbook to address the many vulnerabilities that exist. It won't be easy and it will be expensive, but reducing the risks that accompany a smarter and more connected world is necessary, and companies, insurers, and policymakers are already on the front line of attempts to meet these challenges head on.